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In September 1981, it was discovered that Richard V. Allen, the Advisor to the President for National Security Affairs and head of the National Security Council, had made some questionable transactions with journalists early in the Reagan administration. Allen came into possession of a $1,000 gratuity paid in cash from a Japanese magazine, intended for Nancy Reagan in exchange for an interview she had given. According to his explanation he handed the money to his secretary and she placed the money in a White House safe. Allen then reportedly forgot about it. Also, it was belatedly discovered that around the same time, Allen had accepted three expensive watches as personal gifts from Japanese friends who were high-level governmental consultants. The first investigation of Allen’s actions was conducted by the FBI in late September 1981.

Continued press interest in the issue resulted in an additional investigation conducted by the Criminal Division of the Department of Justice in late November 1981 and resulted in an additional report on December 7, 1981. Despite the release of this report, public questions and media interest still continued. Finally, the President asked White House Counsel Fred Fielding to conduct an internal ethics violation investigation of the transactions. The White House Counsel’s Office issued a report in January 3, 1982. Although Allen was never officially charged with any wrong-doing, he was forced to resign after the investigation ended.

Last Updated: 10/26/2020 11:13PM

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